Business Standard

Sugar output in India set to fall on dry weather, says Kingsman

Related News

Sugar output in India, the world's second-biggest producer, may be less than forecast next year as a drought threatens to in some areas, lowering exports, broker said.

Production may total 25 million tonnes in the year starting October 1, compared with 25.5 million tonnes forecast in June, Kingsman said. The estimate matches those by the Indian Sugar Mills Association and the Ltd. Output this year is set to total 26 million tonnes, it said. A smaller crop and a rally in domestic prices may reduce the availability of Indian sugar for exports, potentially narrowing a global surplus and supporting prices. Overseas sales may slump 43 per cent to 2 million tonnes next season from 3.5 million tonnes this year, Kingsman said.

Sugar prices on the National Commodity & Derivatives Exchange Ltd in Mumbai surged 26 per cent since the end of May on speculation below-average monsoon rain in more than 50 per cent of India will hurt crops from cane to rice and cotton. Futures climbed to Rs 3,672 ($66) on August 4, the highest level since December 2010. The harvest in Maharashtra state, the biggest producer, may drop to 7.5 million tonnes to 7.6 million tonnes next year from 9 million tonnes this year, Kingsman said.

Read more on:   
|
|
|
|
|
|
|

Sugar output in India set to fall on dry weather, says Kingsman

Sugar output in India, the world's second-biggest producer, may be less than forecast next year as a drought threatens to cut yields in some areas, lowering exports, broker Kingsman SA said.

Sugar output in India, the world\'s second-biggest producer, may be less than forecast next year as a drought threatens to cut yields in some areas, lowering exports, broker Kingsman SA said.

Production may total 25 million tonnes in the year starting October 1, compared with 25.5 million tonnes forecast in June, Kingsman said. The estimate matches those by the Indian Sugar Mills Association and the National Federation of Cooperative Sugar Factories Ltd. Output this year is set to total 26 million tonnes, it said. A smaller crop and a rally in domestic prices may reduce the availability of Indian sugar for exports, potentially narrowing a global surplus and supporting prices. Overseas sales may slump 43 per cent to 2 million tonnes next season from 3.5 million tonnes this year, Kingsman said.

Sugar prices on the National Commodity & Derivatives Exchange Ltd in Mumbai surged 26 per cent since the end of May on speculation below-average monsoon rain in more than 50 per cent of India will hurt crops from cane to rice and cotton. Futures climbed to Rs 3,672 ($66) on August 4, the highest level since December 2010. The harvest in Maharashtra state, the biggest producer, may drop to 7.5 million tonnes to 7.6 million tonnes next year from 9 million tonnes this year, Kingsman said.

image

Read More

Agri-commodities prices go down as rainfall improves

With the rainfall picking up in the last few weeks, prices for agri-commodities like sugar, turmeric, potato, pepper and cotton have gone down.

Recommended for you

Advertisements

Quick Links

Market News

Sebi looking into concerns over commission cap in MF industry

AMFI's decision to implement cap on upfront commission from April has created a rift among large mutual fund houses and small players

Nearly 400 listed cos yet to appoint women directors

More companies expected to appoint women directors before April 1 deadline

Top 10 companies shed over Rs 1 lakh cr in m-cap

TCS top loser whose market capitalisation saw an erosion of Rs 18,304 cr

Foreign fund inflows hit $13 bn

Analysts expect the inflows to accelerate further in view of Parliament clearing bills related to insurance, coal allocation and mining

Commexes' turnover drops 41% till March 15 of FY15

Their business stood at Rs 98.57 lakh cr in same period of corresponding year

 

Back to Top